The retail sector in India experienced 146 deals totaling $1.5 billion in the first quarter of 2026. This included one public market transaction, showcasing a rise in deal volumes but a significant drop in values. The shift was towards smaller transactions due to the absence of large deals, according to a report by Grant Thornton Bharat.
In terms of volume, deals increased by 21% to 146 from 120, while the total value decreased by about 55% from $3.4 billion to $1.5 billion. The analysis also noted a surge in outbound activity during the quarter, with investors focusing on disciplined deal-making practices.
The top five Mergers and Acquisitions (M&A) and Private Equity (PE) deals contributed to 57% of the total deal value. Sectors like personal care and food processing attracted significant interest driven by changing consumer preferences for health, convenience, and premium products.
Category-wise, personal care led the M&A deals in value terms with $155 million, emphasizing the investor interest in premium and health-focused categories. The PE segment remained strong with 105 deals amounting to $1.1 billion, showing a 22% increase in volumes.
Investors in the retail sector are shifting towards mid-sized, growth-stage investments and smaller ticket sizes. E-commerce and emerging consumer brands, especially in digital-first and health-focused segments, continued to draw funding. The first quarter of 2026 indicates a cautious recovery in India’s consumer and retail sector, focusing on profitability-led growth and brand strategies.
